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Liberal Leader Michael Ignatieff is developing a stimulus plan for the Canadian economy with a close circle of advisers that includes Ontario's Minister of Finance, who is already dealing with the crisis head-on.

Dwight Duncan, who has long been a strong supporter of Mr. Ignatieff, is offering critical advice to the newly appointed Liberal Leader on industrial issues and the auto industry, a source said.

Mr. Ignatieff has also consulted Frank McKenna, deputy chairman of TD Bank Financial Group, and Don Drummond, a former senior Finance official and the TD's senior economist, as well as Liberal MPs John McCallum and Scott Brison.

He needs all the advice he can get, given that he has only a few weeks to deliver a clear Liberal plan to navigate the current crisis. On Jan. 27, Mr. Ignatieff will have to decide whether he supports or rejects the Conservative government's budget, which will contain its own stimulus package.

Prime Minister Stephen Harper called Mr. Ignatieff two days ago, offering to discuss economic matters with him “any time,” according to a government official.

An official in the Prime Minister's Office would not say when or whether the two men will meet. The official said the Liberals should submit specific proposals for what they want to see in the budget, to be delivered the day after the Jan. 26 resumption of Parliament.

“Our position is if you want to have input in the direction of the budget, you have to share that in advance of the budget,” said the official.

In an interview, Mr. McCallum said that Mr. Ignatieff will need the government's real numbers before engaging in economic discussions. The former Royal Bank economist said no one believes the government's claims of a small budget surplus this year.

“Knowing the true state of the government's books is a precondition for devising an appropriate fiscal stimulus. We have to know where we are before we know what to do for the future,” Mr. McCallum said.

But a government official said the numbers released in this month's fiscal update are as real as they get, adding that they will change only when the government engages in further spending.

Mr. McCallum said the Liberal plan will address the needs of working Canadians and pensioners, as well as those of the companies and institutions that will pull the country out of the crisis.

“There is a credit crunch. We have to take action to ensure that credit flows to individual Canadians … and that credit flows to small businesses that need financing to keep operating,” Mr. McCallum said. “It's a dual role that is crucial at this time.”

The first meeting of Mr. Ignatieff and Mr. Duncan occurred in 2006, when Mr. Duncan was energy minister and offered a lengthy analysis of Ontario's electricity system. Mr. Ignatieff listened intently and is said to have impressed Mr. Duncan with his questions.

Another two-hour meeting followed, after which Mr. Duncan endorsed Mr. Ignatieff's bid for party leader. Mr. Duncan is said by those close to him to have had concerns about Mr. Ignatieff's ability to do “retail” politics, but that he believes he has learned the craft of campaigning.

The Ignatieff campaign felt it important in 2006 to have the support of a senior Ontario cabinet minister. His competitor at the time, Bob Rae, had already received backing from such cabinet heavyweights as Greg Sorbara and George Smitherman.